5 Real Estate Investing Myths

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5 Real Estate Investing Myths That Hold
Investors Back
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Myth 1 Its quick and easy.

• One of the biggest attractions to real
  estateand one of the biggest mythsis the lure
  of making fast and easy money. It is true that
  real estate investing can generate more money
  faster than just about anything else. Some jump
  in and see great success quickly. Not all sustain
  that, unless they have a smart business model.
  For others, it is a slower road. There is nothing
  wrong with that. What is important is having
  realistic expectations and building in
  sustainability, so that you keep what you make.

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Myth 2 Its just like TV.
Reality TV shows have been good and bad for real
estate. On one hand, it has raised the visibility
of investing and has inspired many to get
involved and enjoy the rewards. Still, while
shows like those on HGTV display some of what
goes on behind the scenes, they dont show
everything. They do not show you how to set up
LLCs, find contractors, etc. They often make it
seem too easy. There are important steps in the
setup, and there is often more to the net
numbers. These things are vital for investors to
be aware of.
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Myth 3 You need a lot of money to get started.

• Some real estate investment strategies and
  opportunities do require a lot of money to get
  into. Some promote no money down tactics, which
  can often be tougher than theyre made out to be.
  However, there are viable opportunities that
  require a little money and that can be accessible
  to just about anyone. Dont let assumptions that
  you need a lot of money prevent you from getting
  started. Research your options.

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Myth 4 Raising rents will force tenants out.

• One of the financially crippling myths is if
  I raise my rents, my tenants will leave. This is
  not the case. This is a scared investor talking.
  I once purchased a house with an inherited tenant
  who had been paying 300 a month for 20 years.
  The fair market rent was 900 per month. Talk
  about a scared landlord! If you properly train
  your tenants and increase in increments every
  year instead of making huge jumps, then it should
  not be an issue. Know your local landlord-tenant
  laws and how much you are able to raise the rent
  each year. Then plan on consistently lifting
  those rents to maintain your profit margin as
  inflation increases your expenses.

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Myth 5 The market will always go up.

• Over time and in the long run, real estate
  generally does increase in value. It is also
  cyclical and can be a rollercoaster ride at
  times. In the run up to the crash, most people
  bought properties because they just assumed it
  was a sure bet that they were always going to go
  up. Unfortunately, that did not turn out so well
  for most people. There are always smart
  opportunities to invest, but choose wisely.

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Summary

• There are many myths and misconceptions about
  investing in real estate. This can be really
  harmful for those who arent alert. Real estate
  is one of the bestif not the bestway for many
  to get and stay ahead financially. Profitability
  will rely on you busting through these myths and
  taking smart actions.
• Investors Which of these have you encountered?
  What would you add to this list?
• Still Got Query? Get in touch with Real Estate
  Experts